Exhibit 99.1

 

News Release

 

FOR IMMEDIATE RELEASE

Investor Relations:

Media:

August 1, 2012

Kurt Ogden

Gary Chapman

The Woodlands, TX

(801) 584-5959

(281) 719-4324

NYSE: HUN

 

 

 

HUNTSMAN REPORTS STRONG RESULTS FOR THE SECOND QUARTER 2012:  $365 MILLION ADJUSTED EBITDA, $0.58 ADJUSTED EPS

 

Second Quarter 2012 Highlights

 

·                  Net income attributable to Huntsman Corporation increased 9% to $124 million compared to the prior year period.

 

·                  Adjusted EBITDA improved 14% to $365 million compared to the prior year period.

 

·                  Adjusted diluted income per share improved 21% to $0.58 compared to the prior year period.

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

In millions, except per share amounts, unaudited

 

2012

 

2011

 

2012

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,914

 

$

2,934

 

$

2,913

 

$

5,827

 

$

5,613

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Huntsman Corporation

 

$

124

 

$

114

 

$

163

 

$

287

 

$

176

 

Adjusted net income(1)

 

$

139

 

$

116

 

$

177

 

$

316

 

$

226

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income per share

 

$

0.52

 

$

0.47

 

$

0.68

 

$

1.19

 

$

0.72

 

Adjusted diluted income per share(1)

 

$

0.58

 

$

0.48

 

$

0.74

 

$

1.32

 

$

0.93

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA(1)

 

$

352

 

$

323

 

$

390

 

$

742

 

$

562

 

Adjusted EBITDA(1)

 

$

365

 

$

321

 

$

397

 

$

762

 

$

625

 

 

See end of press release for footnote explanations

 

The Woodlands, TX — Huntsman Corporation (NYSE: HUN) today reported second quarter 2012 results with revenues of $2,914 million and adjusted EBITDA of $365 million.

 

Peter R. Huntsman, our President and CEO, commented:

 

“I am pleased with our second quarter results.  We experienced a solid second quarter, particularly in the quality of our earnings.  Net income, adjusted EBITDA, and adjusted diluted income all increased compared to the prior year.

 

More than 40% of our adjusted EBITDA was derived from our Polyurethanes business, which experienced double digit growth globally for our MDI products.  Margins in that business improved as well.

 

We have yet to realize the majority of benefits from our restructuring efforts.  We expect the annual EBITDA benefit above our current run rate will exceed $150 million when completed by the end of 2013.

 

We will continue to make every effort possible to drive shareholder value.”

 



 

Segment Analysis for 2Q12 Compared to 2Q11

 

Polyurethanes

 

The increase in revenues in our Polyurethanes division for the three months ended June 30, 2012 compared to the same period in 2011 was due to higher sales volumes partially offset by lower average selling prices.  MDI sales volumes increased as a result of improved demand in all regions and across most major markets.  PO/MTBE sales volumes increased due to strong demand.  PO/MTBE average selling prices decreased primarily in response to lower raw material costs, partially offset by an increase in MDI average selling prices.  The increase in adjusted EBITDA was primarily due to higher contribution margins and higher sales volumes.

 

Performance Products

 

The decrease in revenues in our Performance Products division for the three months ended June 30, 2012 compared to the same period in 2011 was due to lower average selling prices and lower sales volumes.  Average selling prices decreased primarily in response to lower raw material costs and the strength of the U.S. dollar against major international currencies.  Sales volumes decreased primarily due to lower demand across most markets and a greater shift to tolling arrangements.  The decrease in adjusted EBITDA was primarily due to lower contribution margins, most notably in amines, lower sales volumes and the approximate $5 million impact from an unplanned outage at our ethylene oxide facility.

 

Advanced Materials

 

The decrease in revenues in our Advanced Materials division for the three months ended June 30, 2012 compared to the same period in 2011 was primarily due to lower average selling prices partially offset by higher sales volumes.  Average selling prices decreased primarily in response to lower raw material costs, competitive market pressure and the strength of the U.S. dollar against major international currencies.  Sales volumes increased across most regions, primarily due to strong demand in our base resins business in the Americas and India, while sales volumes in the Asia Pacific region decreased due to lower demand in the wind energy and electrical engineering markets.  The decrease in adjusted EBITDA was primarily due to lower contribution margins due in part to the change in sales mix from increased base resin sales volumes.  Lower contribution margins were partially offset by lower selling, general and administrative costs as a result of recent restructuring efforts.

 

Textile Effects

 

The decrease in revenues in our Textile Effects division for the three months ended June 30, 2012 compared to the same period in 2011 was primarily due to lower average selling prices partially offset by higher sales volumes.  Average selling prices decreased primarily due to the strength of the U.S. dollar against major international currencies and sales mix.  Sales volumes increased due to increased market share in key markets, specifically Asia.  The increase in adjusted EBITDA was primarily due to higher sales volumes and lower manufacturing costs as a result of recent restructuring efforts.

 

Pigments

 

The decrease in revenues in our Pigments division for the three months ended June 30, 2012 compared to the same period in 2011 was due to lower sales volumes partially offset by higher average selling prices.  Sales volumes decreased primarily due to lower global demand and continued customer destocking, particularly in the Asia Pacific region.  Average selling prices increased in all regions of the world primarily as a result of higher raw material costs partially offset by the strength of the U.S. dollar against major international currencies.  The increase in adjusted EBITDA was primarily due to higher contribution margins partially offset by lower sales volumes.

 

2



 

Corporate, LIFO and Other

 

Adjusted EBITDA from Corporate, LIFO and other increased by $20 million to a loss of $43 million for the three months ended June 30, 2012 compared to a loss of $63 million for the same period in 2011.  The increase in adjusted EBITDA was primarily the result of a $20 million decrease in LIFO inventory valuation expense ($9 million of income in 2012 compared to $11 million of expense in 2011).

 

Liquidity, Capital Resources and Outstanding Debt

 

As of June 30, 2012, we had $1,098 million of combined cash and unused borrowing capacity compared to $1,043 million at December 31, 2011.  For the three months ended June 30, 2012, our primary net working capital increased by $104 million.

 

Total capital expenditures for the three months ended June 30, 2012 were $82 million.  We expect to spend approximately $425 million on capital expenditures in 2012 which approximates our annual depreciation and amortization.

 

Income Taxes

 

During the three months ended June 30, 2012 we recorded income tax expense of $65 million.  Our adjusted effective income tax rate for the three months ended June 30, 2012 was approximately 33%.  We expect our long term effective income tax rate to be approximately 30 - 35%.  During the three months ended June 30, 2012, we paid $57 million in cash for income taxes.

 

3



 

Conference Call Information

 

We will hold a conference call to discuss our second quarter 2012 financial results on Wednesday, August 1, 2012 at 10:00 a.m. ET.

 

Call-in numbers for the conference call:

U.S. participants

(888) 679 - 8033

International participants

(617) 213 - 4846

Passcode

14225591

 

In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to:

 

https://www.theconferencingservice.com/prereg/key.process?key=PQPRTEDXQ

 

Webcast Information

 

The conference call will be available via webcast and can be accessed from the investor relations portion of the company’s website at huntsman.com.

 

Replay Information

 

The conference call will be available for replay beginning August 1, 2012 and ending August 8, 2012.

 

Call-in numbers for the replay:

U.S. participants

(888) 286 - 8010

International participants

(617) 801 - 6888

Replay code

64509445

 

4



 

Table 1 — Results of Operations

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

In millions, except per share amounts, unaudited

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,914

 

$

2,934

 

$

5,827

 

$

5,613

 

Cost of goods sold

 

2,387

 

2,433

 

4,750

 

4,652

 

Gross profit

 

527

 

501

 

1,077

 

961

 

Operating expenses

 

272

 

272

 

537

 

563

 

Restructuring, impairment and plant closing costs

 

5

 

9

 

5

 

16

 

Operating income

 

250

 

220

 

535

 

382

 

Interest expense, net

 

(57

)

(65

)

(116

)

(124

)

Equity in income of investment in unconsolidated affiliates

 

1

 

2

 

3

 

4

 

Loss on early extinguishment of debt

 

 

 

(1

)

(3

)

Other income

 

1

 

1

 

1

 

1

 

Income before income taxes

 

195

 

158

 

422

 

260

 

Income tax expense

 

(65

)

(34

)

(125

)

(56

)

Income from continuing operations

 

130

 

124

 

297

 

204

 

Loss from discontinued operations, net of tax(2)

 

(2

)

(1

)

(6

)

(15

)

Extraordinary gain on the acquisition of a business, net of tax of nil

 

 

1

 

 

2

 

Net income

 

128

 

124

 

291

 

191

 

Net income attributable to noncontrolling interests, net of tax

 

(4

)

(10

)

(4

)

(15

)

Net income attributable to Huntsman Corporation

 

$

124

 

$

114

 

$

287

 

$

176

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA(1)

 

$

365

 

$

321

 

$

762

 

$

625

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income(1)

 

$

139

 

$

116

 

$

316

 

$

226

 

 

 

 

 

 

 

 

 

 

 

Basic income per share

 

$

0.52

 

$

0.48

 

$

1.21

 

$

0.74

 

Diluted income per share

 

$

0.52

 

$

0.47

 

$

1.19

 

$

0.72

 

Adjusted diluted income per share(1)

 

$

0.58

 

$

0.48

 

$

1.32

 

$

0.93

 

 

 

 

 

 

 

 

 

 

 

Common share information:

 

 

 

 

 

 

 

 

 

Basic shares outstanding

 

237.8

 

239.4

 

237.2

 

238.5

 

Diluted shares

 

240.5

 

243.7

 

240.2

 

243.2

 

Diluted shares for adjusted diluted income per share

 

240.5

 

243.7

 

240.2

 

243.2

 

 

See end of press release for footnote explanations

 

5



 

Table 2 — Results of Operations by Segment

 

 

 

Three months ended

 

 

 

Six months ended

 

 

 

 

 

June 30,

 

Better /

 

June 30,

 

Better /

 

In millions, unaudited

 

2012

 

2011

 

(Worse)

 

2012

 

2011

 

(Worse)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

$

1,271

 

$

1,135

 

12

%

$

2,491

 

$

2,182

 

14

%

Performance Products

 

770

 

896

 

(14

)%

1,577

 

1,700

 

(7

)%

Advanced Materials

 

346

 

360

 

(4

)%

686

 

710

 

(3

)%

Textile Effects

 

195

 

200

 

(3

)%

380

 

390

 

(3

)%

Pigments

 

407

 

424

 

(4

)%

831

 

788

 

5

%

Eliminations and other

 

(75

)

(81

)

7

%

(138

)

(157

)

12

%

Total

 

$

2,914

 

$

2,934

 

(1

)%

$

5,827

 

$

5,613

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Adjusted EBITDA(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

$

170

 

$

143

 

19

%

$

347

 

$

257

 

35

%

Performance Products

 

85

 

102

 

(17

)%

175

 

217

 

(19

)%

Advanced Materials

 

24

 

31

 

(23

)%

56

 

70

 

(20

)%

Textile Effects

 

(4

)

(7

)

43

%

(13

)

(13

)

 

Pigments

 

133

 

115

 

16

%

280

 

202

 

39

%

Corporate, LIFO and other

 

(43

)

(63

)

32

%

(83

)

(108

)

23

%

Total

 

$

365

 

$

321

 

14

%

$

762

 

$

625

 

22

%

 

See end of press release for footnote explanations

 

Table 3 — Factors Impacting Sales Revenues

 

 

 

Three months ended

 

 

 

June 30, 2012 vs. 2011

 

 

 

Average Selling Price(a)

 

 

 

 

 

 

 

 

 

Local

 

Exchange

 

Sales Mix

 

Sales

 

 

 

Unaudited

 

Currency

 

Rate

 

& Other

 

Volume(a)

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

(2

)%

(3

)%

3

%

14

%

12

%

Performance Products

 

(7

)%

(3

)%

3

%

(7

)%

(14

)%

Advanced Materials

 

(4

)%

(6

)%

(3

)%

9

%

(4

)%

Textile Effects

 

(3

)%

(5

)%

 

5

%

(3

)%

Pigments

 

26

%

(7

)%

1

%

(24

)%

(4

)%

Total Company

 

1

%

(4

)%

2

%

 

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

 

 

June 30, 2012 vs. 2011

 

 

 

Average Selling Price(a)

 

 

 

 

 

 

 

 

 

Local

 

Exchange

 

Sales Mix

 

Sales

 

 

 

Unaudited

 

Currency

 

Rate

 

& Other

 

Volume(a)

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

4

%

(2

)%

2

%

10

%

14

%

Performance Products

 

(3

)%

(2

)%

1

%

(3

)%

(7

)%

Advanced Materials

 

(3

)%

(4

)%

(2

)%

6

%

(3

)%

Textile Effects

 

(2

)%

(3

)%

(1

)%

3

%

(3

)%

Pigments

 

30

%

(5

)%

 

(20

)%

5

%

Total Company

 

4

%

(3

)%

2

%

1

%

4

%

 


(a) Excludes revenues and sales volumes from tolling, by-products and raw materials

 

6



 

Table 4 — Reconciliation of U.S. GAAP to Non-GAAP Measures

 

 

 

 

 

Income Tax

 

Net Income (Loss)

 

Diluted Income (Loss)

 

 

 

EBITDA

 

(Expense) Benefit

 

Attrib. to HUN Corp.

 

Per Share

 

 

 

Three months ended

 

Three months ended

 

Three months ended

 

Three months ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

In millions, except per share amounts, unaudited

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP(1)

 

$

352

 

$

323

 

$

(65

)

$

(34

)

$

124

 

$

114

 

$

0.52

 

$

0.47

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on consolidation of a variable interest entity

 

 

(12

)

 

2

 

 

(10

)

 

(0.04

)

Restructuring, impairment, plant closing and transition costs

 

9

 

9

 

(2

)

(1

)

7

 

8

 

0.03

 

0.03

 

Discount amortization on settlement financing associated with the terminated merger

 

N/A

 

N/A

 

(3

)

(2

)

5

 

5

 

0.02

 

0.02

 

Acquisition expenses

 

1

 

3

 

 

(1

)

1

 

2

 

 

0.01

 

Gain on disposition of businesses/assets

 

 

(3

)

 

 

 

(3

)

 

(0.01

)

Loss from discontinued operations, net of tax(2)

 

3

 

2

 

N/A

 

N/A

 

2

 

1

 

0.01

 

 

Extraordinary gain on the acquisition of a business, net of tax

 

 

(1

)

N/A

 

N/A

 

 

(1

)

 

 

Adjusted(1)

 

$

365

 

$

321

 

$

(70

)

$

(36

)

$

139

 

$

116

 

$

0.58

 

$

0.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income tax expense

 

 

 

 

 

 

 

 

 

70

 

36

 

 

 

 

 

Net income attributable to noncontrolling interests, net of tax

 

 

 

 

 

 

 

 

 

4

 

10

 

 

 

 

 

Adjusted pre-tax income(1)

 

 

 

 

 

 

 

 

 

$

213

 

$

162

 

 

 

 

 

Adjusted effective tax rate

 

 

 

 

 

 

 

 

 

33

%

22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

Net Income (Loss)

 

Diluted Income (Loss)

 

 

 

EBITDA

 

(Expense) Benefit

 

Attrib. to HUN Corp.

 

Per Share

 

 

 

Three months ended

 

Three months ended

 

Three months ended

 

Three months ended

 

 

 

March 31,

 

March 31,

 

March 31,

 

March 31,

 

In millions, except per share amounts, unaudited

 

2012

 

2012

 

2012

 

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP(1)

 

$

390

 

 

 

$

(60

)

 

 

$

163

 

 

 

$

0.68

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal settlements and related expenses

 

1

 

 

 

 

 

 

1

 

 

 

 

 

 

Loss on early extinguishment of debt

 

1

 

 

 

 

 

 

1

 

 

 

 

 

 

Restructuring, impairment, plant closing and transition costs

 

4

 

 

 

(1

)

 

 

3

 

 

 

0.01

 

 

 

Discount amortization on settlement financing associated with the terminated merger

 

N/A

 

 

 

(2

)

 

 

5

 

 

 

0.02

 

 

 

Loss from discontinued operations, net of tax(2)

 

1

 

 

 

N/A

 

 

 

4

 

 

 

0.02

 

 

 

Adjusted(1)

 

$

397

 

 

 

$

(63

)

 

 

$

177

 

 

 

$

0.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income tax expense

 

 

 

 

 

 

 

 

 

63

 

 

 

 

 

 

 

Adjusted pre-tax income(1)

 

 

 

 

 

 

 

 

 

$

240

 

 

 

 

 

 

 

Adjusted effective tax rate

 

 

 

 

 

 

 

 

 

26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

Net Income (Loss)

 

Diluted Income (Loss)

 

 

 

EBITDA

 

(Expense) Benefit

 

Attrib. to HUN Corp.

 

Per Share

 

 

 

Six months ended

 

Six months ended

 

Six months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

In millions, except per share amounts, unaudited

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP(1)

 

$

742

 

$

562

 

$

(125

)

$

(56

)

$

287

 

$

176

 

$

1.19

 

$

0.72

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal settlements and related expenses

 

1

 

34

 

 

(13

)

1

 

21

 

 

0.09

 

Loss on early extinguishment of debt

 

1

 

3

 

 

(1

)

1

 

2

 

 

0.01

 

Gain on consolidation of a variable interest entity

 

 

(12

)

 

2

 

 

(10

)

 

(0.04

)

Restructuring, impairment, plant closing and transition costs

 

13

 

16

 

(3

)

(1

)

10

 

15

 

0.04

 

0.06

 

Discount amortization on settlement financing associated with the terminated merger

 

N/A

 

N/A

 

(5

)

(5

)

10

 

9

 

0.04

 

0.04

 

Acquisition expenses

 

1

 

4

 

 

(1

)

1

 

3

 

 

0.01

 

Gain on disposition of businesses/assets

 

 

(3

)

 

 

 

(3

)

 

(0.01

)

Loss from discontinued operations, net of tax(2)

 

4

 

23

 

N/A

 

N/A

 

6

 

15

 

0.02

 

0.06

 

Extraordinary gain on the acquisition of a business, net of tax

 

 

(2

)

N/A

 

N/A

 

 

(2

)

 

(0.01

)

Adjusted(1)

 

$

762

 

$

625

 

$

(133

)

$

(75

)

$

316

 

$

226

 

$

1.32

 

$

0.93

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income tax expense

 

 

 

 

 

 

 

 

 

133

 

75

 

 

 

 

 

Net income attributable to noncontrolling interests, net of tax

 

 

 

 

 

 

 

 

 

4

 

15

 

 

 

 

 

Adjusted pre-tax income(1)

 

 

 

 

 

 

 

 

 

$

453

 

$

316

 

 

 

 

 

Adjusted effective tax rate

 

 

 

 

 

 

 

 

 

29

%

24

%

 

 

 

 

 

See end of press release for footnote explanations

 

7



 

Table 5 — Reconciliation of Net Income (Loss) to EBITDA

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

In millions, unaudited

 

2012

 

2011

 

2012

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Huntsman Corporation

 

$

124

 

$

114

 

$

163

 

$

287

 

$

176

 

Interest expense, net

 

57

 

65

 

59

 

116

 

124

 

Income tax expense from continuing operations

 

65

 

34

 

60

 

125

 

56

 

Income tax benefit from discontinued operations(2)

 

(1

)

(1

)

(1

)

(2

)

(8

)

Depreciation and amortization of continuing operations

 

107

 

111

 

105

 

212

 

214

 

Depreciation and amortization of discontinued operations(2)

 

 

 

4

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA(1)

 

$

352

 

$

323

 

$

390

 

$

742

 

$

562

 

 

See end of press release for footnote explanations

 

Table 6 — Selected Balance Sheet Items

 

 

 

June 30,

 

March 31,

 

December 31,

 

In millions

 

2012

 

2012

 

2011

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

461

 

$

478

 

$

562

 

Accounts and notes receivable, net

 

1,677

 

1,801

 

1,529

 

Inventories

 

1,645

 

1,638

 

1,539

 

Other current assets

 

326

 

292

 

316

 

Property, plant and equipment, net

 

3,536

 

3,648

 

3,622

 

Other assets

 

1,084

 

1,096

 

1,089

 

Total assets

 

$

8,729

 

$

8,953

 

$

8,657

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

976

 

$

1,089

 

$

862

 

Other current liabilities

 

729

 

704

 

752

 

Current portion of debt

 

143

 

193

 

212

 

Long-term debt

 

3,601

 

3,628

 

3,730

 

Other liabilities

 

1,274

 

1,319

 

1,325

 

Total equity

 

2,006

 

2,020

 

1,776

 

Total liabilities and equity

 

$

8,729

 

$

8,953

 

$

8,657

 

 

8



 

Table 7 — Outstanding Debt

 

 

 

June 30,

 

March 31,

 

December 31,

 

In millions

 

2012

 

2012

 

2011

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Debt:

 

 

 

 

 

 

 

Senior credit facilities

 

$

1,686

 

$

1,698

 

$

1,696

 

Accounts receivable programs

 

232

 

242

 

237

 

Senior notes

 

483

 

478

 

472

 

Senior subordinated notes

 

893

 

893

 

976

 

Variable interest entities

 

271

 

279

 

281

 

Other debt

 

179

 

231

 

280

 

 

 

 

 

 

 

 

 

Total debt - excluding affiliates

 

3,744

 

3,821

 

3,942

 

 

 

 

 

 

 

 

 

Total cash

 

461

 

478

 

562

 

 

 

 

 

 

 

 

 

Net debt- excluding affiliates

 

$

3,283

 

$

3,343

 

$

3,380

 

 

Table 8 — Summarized Statement of Cash Flows

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

In millions, unaudited

 

2012

 

2012

 

2011

 

 

 

 

 

 

 

 

 

Total cash at beginning of period

 

$

478

 

$

562

 

$

973

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

158

 

348

 

1

 

Net cash used in investing activities

 

(76

)

(185

)

(111

)

Net cash used in financing activities

 

(88

)

(264

)

(178

)

Effect of exchange rate changes on cash

 

(5

)

(1

)

5

 

Change in restricted cash

 

(6

)

1

 

 

Total cash at end of period

 

$

461

 

$

461

 

$

690

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

Cash paid for interest

 

$

(24

)

$

(106

)

$

(108

)

Cash paid for income taxes

 

$

(57

)

$

(70

)

$

(35

)

Cash paid for capital expenditures

 

$

(82

)

$

(163

)

$

(124

)

Depreciation & amortization

 

$

107

 

$

216

 

$

214

 

 

 

 

 

 

 

 

 

Changes in primary working capital:

 

 

 

 

 

 

 

Accounts and notes receivable

 

$

56

 

$

(183

)

$

(325

)

Inventories

 

(74

)

(139

)

(270

)

Accounts payable

 

(86

)

100

 

200

 

Total (use) / source

 

$

(104

)

$

(222

)

$

(395

)

 

9



 


Footnotes

 

(1)        We use EBITDA and adjusted EBITDA to measure the operating performance of our business.  We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business.  We believe that net income (loss) attributable to Huntsman Corporation is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”) that is most directly comparable to EBITDA, adjusted EBITDA and adjusted net income.  Additional information with respect to our use of each of these financial measures follows:

 

EBITDA is defined as net income (loss) attributable to Huntsman Corporation before interest, income taxes, and depreciation and amortization. EBITDA as used herein is not necessarily comparable to other similarly titled measures of other companies. The reconciliation of EBITDA to net income (loss) attributable to Huntsman Corporation is set forth in Table 5 above.

 

Adjusted EBITDA is computed by eliminating the following from EBITDA:  EBITDA from discontinued operations; restructuring, impairment, plant closing and transition costs (credits); income and expense associated with the terminated merger and related litigation; acquisition expenses; certain legal settlements and related expenses; loss on early extinguishment of debt; gain on consolidation of a variable interest entity; extraordinary (gain) loss on the acquisition of a business; and loss (gain) on disposition of businesses/assets.  The reconciliation of adjusted EBITDA to EBITDA is set forth in Table 4 above.

 

Adjusted net income (loss) is computed by eliminating the after tax impact of the following items from net income (loss) attributable to Huntsman Corporation: loss (income) from discontinued operations; restructuring, impairment, plant closing and transition costs (credits); income and expense associated with the terminated merger and related litigation; discount amortization on settlement financing associated with the terminated merger; acquisition expenses; certain legal settlements and related expenses; loss on early extinguishment of debt; gain on consolidation of a variable interest entity; extraordinary (gain) loss on the acquisition of a business; and loss (gain) on disposition of businesses/assets.   We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP.  The reconciliation of adjusted net income (loss) to net income (loss) attributable to Huntsman Corporation common stockholders is set forth in Table 4 above.

 

(2)        During the first quarter 2010 we closed our Australian styrenics operations, results from this business are treated as discontinued operations.

 

About Huntsman:

 

Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman has approximately 12,000 employees and operates from multiple locations worldwide. The Company had 2011 revenues of over $11 billion. For more information about Huntsman, please visit the company’s website at www.huntsman.com.

 

Forward-Looking Statements:

 

Statements in this release that are not historical are forward-looking statements. These statements are based on management’s current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company’s operations, markets, products, services, prices and other factors as discussed in the Huntsman companies’ filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors.  The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

 

10